WSR 16-01-100 PROPOSED RULES LIQUOR AND CANNABIS BOARD [Filed December 16, 2015, 10:51 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-20-122.
Title of Rule and Other Identifying Information: WAC 314-03-040 Consumer orders, internet sales, and delivery for beer and/or wine gift delivery licenses.
Hearing Location(s): Washington State Liquor Control Board, Board Room, 3000 Pacific Avenue S.E., Olympia, WA 98504, on February 10, 2016, at 10:00 a.m.
Date of Intended Adoption: February 24, 2016.
Submit Written Comments to: Karen McCall, P.O. Box 43080, Olympia, WA 98504, e-mail rules@lcb.wa.gov, fax (360) 664-9689 by February 10, 2016.
Assistance for Persons with Disabilities: Contact Karen McCall by February 10, 2016, (360) 664-1631.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Rules are needed to clarify the requirements for internet sales and delivery by beer and wine (B/W) gift delivery licensees.
Reasons Supporting Proposal: B/W gift delivery licensees have been taking internet orders and delivery product without a clear set of rules explaining the requirements for this activity.
Statutory Authority for Adoption: RCW 66.24.550.
Statute Being Implemented: RCW 66.24.550.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state liquor and cannabis board, governmental.
Name of Agency Personnel Responsible for Drafting: Karen McCall, Rules Coordinator, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1631; Implementation: Becky Smith, Licensing Director, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1615; and Enforcement: Justin Nordhorn, Chief Enforcement, 3000 Pacific Avenue S.E., Olympia, WA 98504, (360) 664-1726.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not required.
A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis was not required.
December 16, 2015
Jane Rushford
Chairman
NEW SECTION
WAC 314-03-040 Consumer orders, internet sales, and delivery for beer and/or wine gift delivery licenses.
A beer and/or wine gift delivery licensee may accept orders for beer or wine from, and deliver beer or wine to, customers.
(1) Resale. Liquor shall not be for resale.
(2) Stock location. Liquor must come directly from a licensed retail location.
(3) How to place an order. Liquor may be ordered in person at a licensed location, by mail, telephone or internet, or by other similar methods.
(4) Sales and payment.
(a) Only a licensee or a licensee's direct employees may accept and process orders and payments. A contractor may not do so on behalf of a licensee, except for transmittal of payment through a third-party service. A third-party service may not solicit customer business on behalf of a licensee.
(b) All orders and payments shall be fully processed before liquor transfers ownership or, in the case of delivery, leaves a licensed premises.
(c) Payment method. Payment methods include, but are not limited to: Cash, credit or debit card, check or money order, electronic funds transfer, or an existing prepaid account. An existing prepaid account may not have a negative balance.
(d) Internet. To sell liquor via the internet, a new license applicant must request internet-sales privileges in his or her application. An existing licensee must notify the board prior to beginning internet sales. A corporate entity representing multiple stores may notify the board in a single letter on behalf of affiliated licensees, as long as the liquor license numbers of all licensee locations utilizing internet sales privileges are clearly identified.
(5) Delivery location. Delivery shall be made only to a residence or business that has an address recognized by the United States postal service; however, the board may grant an exception to this rule at its discretion. A residence includes a hotel room, a motel room, or other similar lodging that temporarily serves as a residence.
(6) Hours of delivery. Liquor may be delivered each day of the week between the hours of 6:00 a.m. and 2:00 a.m. Delivery must be fully completed by 2:00 a.m.
(7) Age requirement.
(a) Per chapter 66.44 RCW, any person under twenty-one years of age is prohibited from purchasing, delivering, or accepting delivery of liquor.
(b) A delivery person must verify the age of the person accepting delivery before handing over liquor.
(c) If no person twenty-one years of age or older is present to accept a liquor order at the time of delivery, the liquor shall be returned.
(8) Intoxication. Delivery of liquor is prohibited to any person who shows signs of intoxication.
(9) Containers and packaging.
(a) Individual units of liquor must be factory sealed in bottles, cans or other like packaging. Delivery of growlers, jugs or other similar, nonfactory sealed containers is prohibited. For the purposes of this subsection, "factory sealed" means that a unit is in one hundred percent resalable condition, with all manufacturer's seals intact.
(b) The outermost surface of a liquor package, delivered by a third party, must have language stating that:
(i) The package contains liquor;
(ii) The recipient must be twenty-one years of age or older; and
(iii) Delivery to intoxicated persons is prohibited.
(10) Required information.
(a) Records and files shall be retained at the licensed premises. Each delivery sales record shall include the following:
(i) Name of the purchaser;
(ii) Name of the person who accepts delivery;
(iii) Street addresses of the purchaser and the delivery location; and
(iv) Time and date of purchase and delivery.
(b) A private carrier must obtain the signature of the person who receives liquor upon delivery.
(c) A sales record does not have to include the name of the delivery person, but it is encouraged.
(11) Web site requirements. When selling over the internet, all web site pages associated with the sale of liquor must display a licensee's registered trade name.
(12) Accountability. A licensee shall be accountable for all deliveries of liquor made on its behalf.
(13) Violations. The board may impose administrative enforcement action upon a licensee, or suspend or revoke a licensee's delivery privileges, or any combination thereof, should a licensee violate any condition, requirement or restriction.
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